If the Real GDP Increases from One Year to the Next

question 32

Multiple Choice

If the Real GDP increases from one year to the next, we could conclude the country experienced:

• A) inflation and no change in output.
• B) an increase in output and no change in prices.
• C) a definite increase in output and may have experienced an increase in prices.
• D) definite inflation and may have experienced an increase in output.

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Definitions:

Assimilation

In Piaget’s theory, the process by which new experiences are interpreted and integrated into preexisting schemas.

Preexisting Idea

An idea or belief that was formed before being exposed to new information or experiences.

New Experience

Encountering or undergoing something for the first time, which can lead to learning, adaptation, and growth.

Secondary Circular Reactions

Part of Jean Piaget's theory of cognitive development, representing repetitive behaviors in infants aimed at reproducing interesting effects in their environment.